Why We Like It:
SBUX is the gourmet coffee company with the ubiquitous store fronts. After plunging back in July the stock fought its way higher and managed to fill the gap before finally failing and reversing near prior support and new resistance in the $51-52 area. Now shares are trendline lower and look poised to breakdown and really accelerate.

The stock has been tracking the 50-dma the last few days. I am suggesting we use a trigger at $48.40 to launch bearish positions. If triggered our target is $44.00. More aggressive traders could aim lower since SBUX appears to be in a new trend of lower highs and lower lows.

Trigger @ 48.40

- Suggested Positions -

buy the Nov $50 PUT (SBUX1211w50) current ask $2.58

Annotated Chart:

Entry on October xx at $ xx.xx
Average Daily Volume = 8.1 million
Listed on October 6, 2012